mercedes suv and police chased them. during this chase, the suspects tossed explosives and hand grenades out the window. at the end of the chase, authorities shot .killed one suspect. when the police approached his body, they discovered an ied strapped to his chest. we have since heard from the doctors who tried to resuscitate when he was brought into the emergency room that he was covered with shrapnel, as well. it was not just gunshots, but he had signs of shap natural and explosions. police say the streets are littered with unexplosive devices. they are warning people in the area to stay in their homes with the doors locked. authorities are searching the area looking for suspects on a door to door basis. the suspect with the white hat is who they're looking for now. there are a lot of photos about of this gentleman that have been seen online and on the news. but, again, the suspect in the

white hat is the one that the police are still looking for. actively at this moment, they have shut down busses and subways in boston. they are warning people to stay away from those platforms, not to wait or congregate in areas. they want people locked in their houses and is away from the street. >> what do we know about these guys? nbc news is reporting they have international ties, may have military experience and appear to have been in the u.s. for as long as one year. and they do seem like there are some military ties here to be this well suited to all these things. >> people are already speculating that they might have some sort of military background or training at least that has come in. andrew. >> i was just going to say, the organization that must have been required for what took place early this week but for clearly the amount of ammunition and bomb making -- that'story question, right? >> i would be -- >> and by the way, if they're

only searching for one person and they're shutting down all of the subway systems, there has to be a working assumption, perhaps, that there's other things that they potentially need to worry about. >> not necessarily. i think more than anything, they don't want to lose this guy. they don't want anybody wandering into what's out there. the idea of rush hour and people starting to come out of their homes, that has to be a huge concern when you have someone who is armed and dangerous who has been on the run. why don't we bring in former fbi agent jeff lansa. jeff, maybe you can help us with trying to understand what's happening, what law enforcement officials would be thinking at this time. >> well, i think the main goal right now is to get this other guy in custody before he hurts anybody else and try to close out the situation. he's a very, very dangerous person. i don't think anyone is safe in that area until he's apprehended. and it sounds to me like he doesn't want to be taken alive.

so there could be another chutout before this whole thing is over. >> that's what you speculate because the other suspect had an ied strapped to his chest? >> absolutely. we don't know the whole background on these guys. we don't know what their motive was. we don't know exactly all the things. a lot of it is going to be -- we're going to determine that in the next several hours. but it doesn't sound like they want to be captured or he wants to be captured and go through the justice system. i think he's going to shoot it out within way or the other. >> let me ask you a quick question. can this be done by two individuals? meaning do you need more of a support system to get all of the materials that were clearly required to this tragedy in boston? >> you know, it's possibly that they did it themselves. my thought is that there's other people involved. from a direction standpoint, an organization standpoint, maybe not intimately involved in all the last-minute details, but this sounds to me like it's a

bigger thing. but, you know, we don't know that yet and that's what the police will be working on here pretty hard in the next several days. >> hang tight there just for one second. stay with us if you could. skoet cohen is live there in watertown and joins us now with more this morning. scott, good morning to you. >> good morning, andrew. let me set the scene a little bit in watertown, which is to say the least a very tense place this morning. there are police barricades, police lines everywhere. they don't want people around. they've told people to stay in their homes and only open their doors if they know that it's a police officer that's at the door. that is how tense it is because they believe that the so-called suspect number two is at large here and there's a big police pleas ens trying to find him and hopefully take him alive. a short time ago, there was a press briefing a short distance here in watertown. let's listen to a little bit of that right now.

>> we had a patient that was coming in with multiple injuries. that patient arrived here at 1:20 by boston ems, by the p1 crew who did an exemplary job. but at that point he was in a traumatic arrest with cpr ongoing. we spent about 10 to 15 minutes trying to res secessuscitate th patient with a number of procedures being done that were unsuccessful and at 1:35 in the morning, he was pronounced. >> now, that is not the most recent press conference, but a press conference from one of the hospitals. what you gather from that is that there's death involved, not just the so-called suspect number one, but also an m.i.t. campus police officer. let's take you through what happens here. it began late last night in cambridge. a campus police officer respond to go a call.

he was shot in the head. a short time later at a cambridge 7-eleven, there was a car jacking. and at that point, suspect number two was caught on surveillance video wearing a gray hoodie. they car jacked a mercedes suv and in the police chase that ensued, they were apparently throwing grenades or some sort of explosive device out of the vehicle, ultimately made their way here to watertown. various reports of fire fights, explosive devices, possibly a pressure cooker bomb and now we know the -- one of the suspects, the guy in the pictures in the black hat, was killed in the course of all of this. but guy number two, suspect number two, the guy in the white hat who was seen on video placing -- actually placing a calm at the scene of monday's explosion at the boston marathon is reported to be still at large. nbc news reporting and police now confirming that the two

suspects have international ties, military experience, have been in the u.s. for at least a year. beyond that, we don't know what their background is and what their moerve may have been, but that's who we're dealing with. >> we talked about cambridge. no indication that they are connected to any school or college/university? people talk obviously about visas and how they might be here. >> well, they're of the right age where they would be, but the authorities at last report were trying to determine if they're connected to a university, if they're here on auto student visa, for example, or we said international ties. that doesn't mean that they are not u.s. citizens. they can be. anything at that point is speculation. >> the -- you're calling these things hand grenades. did they make these? are they real military grade hand grenades? does anyone know at this point?

did they can off? did they find one that didn't go off? do you know? >> i don't know that. i know that there have been explosions reported amid all the gunfire, although i don't think the naert of the dwiegzs. there was the report that at least one of the dweess was yet another pressure cooker bomb. but one of the things that they were concerned about is whether or not there are unexploded devices between game ridge and watertown or in watertown. that's one of the many things that has this town on edge. >> i'm just wondering how you even get one in the country. they're not for sale, obviously. i don't know where you even try to get a hand grenade. no idea what the m.i.t. connection is at this point, either, scott, or what was going on to get the call in the first place? nothing. building 32, i read. i know that campus. >> i think there were reports of a disturbance, but i can't confirm that and exactly why it started at m.i.t. i don't know.

but all we know at this point is that's where it started today or last night, i should say. >> scott, stay where you are for a second. we have jeff on the phone. jeff, when it comes to finding out more about their history, more about their background, more about why and how they may be in the united states, and i know we're basically speculating at this point, as a former agent, how would you even think about this? >> they have the names, they can certainly trace back the history, were they student, when did they get here? there will be paper records, electronic records of anything that led up to them coming to the united states. they'll get all that figured out in time and probably not too long a time. but the goal now is to get this guy in custody before he kills anybody else or tries to kill

another police officers. this is like something out of a movie script. it's happening right now as we speak on the streets of massachusetts. >> when we spoke earlier, we were talking about whether there could be other people involved in this. in terms of how an investigation is going on, clearly they're trying to capture this second gentleman. is there a parallel investigation going on around other people still? >> there may be. it depends on what the investigation uncovered before this all happened. so, you know, there's teams of agents that have different aspects of this investigation. that's what they've been assigned to do. some of them have been working on the conspiracy, other people's theory. some have been focused on

catching them. there's a lot of different tentacles to their investigation absolutely conquering right now. they'll have some answers in pretty short-term. we don't have to speculate any more. >> let me ask you one other question, which is you have to imagine that law enforcement wants to take this second gentleman alive. and how do you do that in a situation like this given what too much overnight with the first and the idea that they could be trapped with explosives? what type of direction is made to those on the ground about how to deal with that? >> well, it becomes very difficult. action is much faster than reaction. so even if you have a guy cornered, you know, he could take his own life or start shooting at the police and -- be killed that way. that's called suicide by police.

he's not probably going to be taken alive. so the idea is to get him before he can react. but, you know, he's probably armed to the hit. he's probably booby trapped with weapons wherever he is. i don't know about the -- that sounds a little out of the box. but he's got something on -- they're going to have to cap him by surprise in order to arrest him before he kills himself or kills somebody else. >> jeff lanza, thank you for joining us this morning and for your perspective. we hope to talk to you as this situation progresses. >> and you can imagine the schools in boston dealing with this. harvard, m.i.t., emerson, all canceled classes today. here is part of a statement sent to m.i.t. students earlier this morning. in consultation with faculty chair sam allen, we decided to

cancel classes today. all employees are encouraged to use their best judgment about whether they're prepared to come into work today. any absence today will be considered excused. m.i.t. is working now to plan a gathering later today on campus once we've determined the time and place, we'll communicate with you all. for those of you you just waking up this morning and wanting to know where the markets are at this point, we've been keeping track of that, as well. this morning, futures are indicated higher. right now, those dow futures are indicated up by about 31 points. s&p futures are higher, as well. we've been watching gold, which has had a fairly dramatic move. right now, it's up about $20. it is up to $1412.30. dennis gartman is with us today, as well. dennis, you've beening gold. you've been watching the reaction to some of these things. what do you make in the move of gold this morning? >> it moved up to 1425 and it

did it before this news began to hit b, which would indicate to me that something else was going on in the gold market other than this news. i can't imagine this is extraordinarily bullish or extraordinarily bearish for the gold market. >> it seems the markets have been ignoring much of the news. >> quite honestly, i think they have. >> on monday, we saw a drop off in gold and oil, the equities markets. you can see this morning that crude oil prices are up by about 1% to 88.66. the ten-year note at this point is yielding 1.714%. so oil back below 1.8%. and the dollar this morning is indicated stronger against the yen. the yen is at 99.25. the euro is at 11.3092. >> we're going to slip into a quick break this morning. if you are just waking up right now, here is the latest from boston overnight. a fire fight involving suspects from the marathon bombing in boston. the mayhem began when the suspects appeared to have

confronted an m.i.t. police officer, shot minimum in the head and killed him. one of the suspects is seen on surveillance tape obtained by police reporting a cambridge 7-eleven. the subject then car jacked a mercedes suv. police chased them during that chase. the suspects tossed explosives and hand grenades out of the car window. at the end of the chase, authorities shot and killed one suspect. when police approached his body, they discovered an i.e.d. was strapped to his chest. police say the streets will littered with devices. authorities are searching the area for -- and looking for that suspect. that suspect in the white hat, the man -- is the man that they are looking for right now. we're going to many coback with a lot more as this story unfolds this morning right after this. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts

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welcome back, everybody. one marathon suspect is dead after an early morning battle with authorities in watertown, massachusetts. the second is on the run. authorities warn he should be considered armed and dangerous. they are warning all watertown residents and those in the surrounding towns to stay inside, stay with their doors locked. at this point, transportation in boston has been shut down. the subway lines are down, the bus lines are down and is, again, authorities are warning people to stay away. they don't want you congregating

waiting for any of these subways to open up again. they want people to stay and remain in their homes. we've talked about a lot of the universities that have shut down classes today. businesses are also expected to be shut down. joining us right now on the squawk news line is roger cresley. he is also ran nbc terrorism analyst. roger, you hear how things have developed at this point. does it surprise you to hear what's happened given everything that you've watched? >> it's a remarkable development that it happened this quickly. if, in fact, this was a result of the news conference yesterday where the fbi publicized those photos, we see the benefit of that. but this is now going to -- this is now going to move to its conclusion. and in a matter of hours. and what we've seen is that they have been able to not only kill one suspect, but they're now locked down and they're moving in on an area of watertown and this could be over very, very

quickly. >> obviously, it's great news that they've been able to identify people. the suspect so quickly and move on it. is there going to be second-guessing about releasing some of these photos so early just because of the very public nature of how this has all happened or did you need tt those pictures out there in order to identify those people? >> no. the fbi would have released the pictures if they had other leads. and the whole purpose of doing that was to get the public involved. so if anyone is second-guessing right now, well, a, they're foolish and, b, if the reason why these individuals are caught, it's because of what the actions were yesterday. so we will wait and see how this plays out. >> in terms of what happens next, i means, from what you've seen, from what you've heard, would it be -- obviously, this is a lot of subsigz at this point. would it be your guess that these are individuals acting alone or do you worry that they are part of this cell?

>> you simply don't know. you're hearing some reports that there was a car jacking, an individual was held hostage and when he was release d one of th suspects said to him we're the guys behind the marathon bombing. if all that is true, then this is not what we're used to seeing with it comes to episodes of terrorism from overseas. a lot of people have thought that there was a domestic component to this, its origin. if any of that is true, from what has been reported, then it leads in that direction. again, there's no way to know and we'll find out very rapidly. that's for sure. >> one of the questions we were asking earlier in the broadcast this morning is whether we believe that there was support, a support system for these two men, whether they could carry this out on their own, whether they would need additional people. and whether a parallel investigation would be going on

around other individuals. given your experience, what typically is going on right now? and do you think this could have happened with these two on their own? >> well, it serm could have happened with these two on their own, given the type of device that they made, the proliferation of information that's available on the internet and elsewhere on how to make these. these were very crude devices, although they're still incredibly deadly. but we'll be able to find out very quickly because they will know where these individuals live. they'll be able to go through phone records, computer records. if this was a tipped key to somebody who knew them and they called into police, individuals saw their pictures on tv as a result of the news conference yesterday, then the law enforcement is going to move rapidly on pulling on string of who was behind this besides these two and whether or not there was a broader conspiracy involved. >> roger, thank you for joining thus morning. i should note you're watching mamgs of police going literally

house to house there. right now, we're going to dip in and listen to our local boston affiliate. >> the residents come out first and the s.w.a.t. team moves in. now the s.w.a.t. team apparently has cleared one more house and we would guess might move down to one other. the officers apparently satisfied that the vehicle -- because they're moving around it with much less care than they did earlier in the night, apparently satisfied that there is no longer an explosive danger. we heard from one of the residents in his home that they looked out over the night, started with the sound of crashing cars. they looked out and saw a police sauf in the search crashing into his neighbor's car. and them there was the changes of gunfire and at one point he looked out and saw as what looked like a pressure cooker

out in the street. and he heard and saw what he thought were grenades being tosd out of the vehicle. the residents who then after that went into their basement is now telling their stories after very difficult night. i'm going to throw it back to you while we continue to watch. >> dan, thank you. you know, we see the pace of things very methodical here now. there was a lot more phrenetic throughout the night with the gunfire and the streets and the suspect seen throwing devices out the window. we had a report from a resident who saw what looked like a pressure cooker in watertown. so there has been big concern about potential explosive devices. the area that they are focusing on has been a 20-block perimeter. we haven't been talking specific when he is they believed they had suspect number two potentially in a building. we have been kind of vague about

that. we know that there are dozens and dozens of law enforcement officials still in that area. but the focus is here, on this street, to get people to safety. but overall, to capture the suspect number two. >> you know, kim, what's interesting is as we hear what christa just reported to us, there was a car jacking overnight and these two drove around the driver of the mercedes suv they car jacked. and according to nbc sources, that they admitted to this person that this, in fact, were the marathon bombers. and it just kind of begs the question, it's almost as if they wanted this though happen, they wanted to get caught, they wanted to go out in a blaze of glory. why risk an armed robbery of a 7-eleven and then ambushing a police officer, car jacking someone, it's like let's go as much as we can to make sure we

get caught. they were heavily armed. clearly by the witness accounts and by what the police are saying and what we've heard, they were prepared with explosives, multiple explosive devices and apparently a lot of guns, as well. and it's just as if they want this to happen, you know what? let's go out there ask poke and prod until we can generate this teen of response. it doesn't make sense. >> it doesn't make sense to the average person. but when we saw that picture of the 7-eleven and we see the picture of suspect number two, i don't remember seeing any backpack or anything, but all night long we've been talking about these devices. they car jacked a vehicle. how do they have all these explosive devices? another point that goes along with that same theme that they do have access and events taking explosive devices along with them is the doctor at beth

israel who said when suspect number one was shot in that fire fight and they brought him into the hospital after 1:00 this morning, they tried to resuscitate for about 15 minutes and he was pronounced dead. they said he had multiple, unable to count the amount of gunshots wounds and a blast wound. it led you to believe that perhaps he was a victim of one of his own devices. >> and according to pete williams, both these marathon suspects had foreign military training. let's check in once more with adam williams. he is right there in the epicenter of everything happening. >> that's right. i'm able to watch these pictures live along with you. and i can tell you that what you're seeing here, this is one street in watertown. it's playing out on many streets in watertown. my police source who has been

out here late last night telling me these house to house searches are going on all over the place. it would be interesting to find out the population of watertown and the square mileage to see what they're up against. it's evident, though, ta they are taking everything, everybody very seriously. i just ran into a boston globe photographer who told me he's been roaming around on foot because we can no longer drive in or out of this community. he's been stopped by police a number of times. when he was changing the camera in the car, they searched his trunk making sure that this was nothing in there. this is a friday morning, 6:30. this would normally be the hustle and bustle of people going out to their jobs to begin the weekend. instead, it is gray skies, breezy. there's a cold, bleak feeling

right now and a real feeling of insecurity and uncertainty. i'm looking around and seeing more and more police arrive here where we are right along the mt. auburn stretch, kind to have main drag through watertown. we saw what was almost like a motorcade come through and it's watching one right now of officers coming in and out. i'm assuming that what it is is an exchange of information as we watch these live pictures. it's nothing but absolute delicate handling and it has to be right now. because when you consider who they are looking for, what this person has allegedly done, what they could be capable of, you're talking about a very fragile and delicate situation here. we're watching this right along with you and we'll be here to keep you posted. >> thank you, adam. and in answer to your question, about 32,000 people in water toub, four square miles. but the scene here focused on

east watertown. many of you just waking up this friday morning and you're waking up to a huge story in the boston area in the commonwealth. and we're going to bring you up to date on everything that's happened likely while you were sleeping last night. we do begin with breaking news right here at the top of the 6:30 hour. and it is significant. live pictures of watertown as dozens and dozens of law enforcement agents and as you're looking at s.w.a.t. teams now try to keep the watertown area, the people there safe as they search for a suspect who went on a violent crime spree with a partner last night. it turns out the two that were involved last night in cambridge, in the killing of an m.i.t. police officer involved in gunfire that resulted in serious critical condition of a key officer, resulted in gunfire

and this massive police presence are actually the same two suspects wanted in the marathon bombings, just identified by fbi agents about 13 1/2 hours ago. on your left, suspect number one in the black cap, he is dead. >> again, you've been listening to live coverage from our boston affiliate who has been bringing you up to date on what's happening on the ground on a moment by moment basis. this is in watertown, massachusetts. one of the suspects in this situation, one of the suspects for the boston marathon has been killed. the other is considered armed and incredibly dangerous. they have been warning residents in watertown and in the surrounding town toes make sure that they stay inside and lock their doors. police are actively looking for the second suspect. if you've been listening in this morning, we'll continue to tell you what's happening along the way. let's bring you a few updates on these things. yesterday, the markets ended down sharply. the futures at this point for

the dow are up about 23 points above fair value, the s&p is up just over 8. gold prices are launched a bit of a rebound at 1411, up by about $18.09. dennit gartman is our guest today joining us on set. >> everything has completely stopped in the last hour and a half. nothing has moved. you had gold up sharply higher earlier. now it's simply gotten quiet. the dollar depends on which currently, rushed higher against the yen. it has gotten quiet. nothing has moved. watching the s&p futures, they were up ten points and have stayed up ten points for the last hour. >> everyone is watching these live pictures from watertown. this is an incredible cap to what has been a horrific week. again, one suspect is dead. another is being pursued actively by police. they are going door to door in watertown, massachusetts. this all started last night on

the campus of m.i.t. where an m.i.t. officer was shot and killed. a second has been injured seriously. there are reports that this happened with a robbery at the 7-eleven that was brought into this. the suspects fled and were pursued heavily by police. they were throwing some sort of explosive devices out the woin along the way. police are worried some 06 those devices could still be in the yand. there was a standoff by police. one of the suspects was killed. we got a report earlier this morning from the doctors who treated him. they say there were signs of sh shrapnel damage. that it looked like wounds consistent with an explosive device like that. so it wasn't just gunshot wounds. it was shrapnel from a device that went off. we've been watching these pictures and watching the markets along the way.

as dennis pointsed out, it looks as if things have come to a bit of a stand still. >> well, the dow futures are now up a little bit more. general electric did report results that were 39 cents, 4/cents above, but it included gains based on the sale of universal, of nbc, i think. the final remaining stakes. so that would put it in line. but revenue, which is always watched closely at general electric was above expectations. it came in at $35 billion and the stock is indicated up about 50 cents or so, 40 cents, 50 clents. asking 23.24 and that will add a little bit to the gains that we're seeing in the dow. hopefully all this works out okay. we've got our fingers crossed. it has been a horrific week, but god bless the anybody and everyone else. it's moving very quickly.

>> identify and one of them looked -- >> i looked at building 32 at m.i.t. eats right on mass avenue. so they weren't on the campus, per se. mass ave. splits both sides of the campus. >> we have to imagine it's close by, but i don't know. >> let's -- you know, it's happening right now and, you know, i'm watching twitter. i don't know whether anyone knows anything on twitter. they've got more stuff that they say they know and it's -- >> at this point -- >> it has not been the most trustworthy. >> at this point, i'm trusting twitter about as much as i trust the new york post. we're going to fit in a break. the latest from boston, just waking up, authorities are going door to door. and you can imagine if there's -- if we ever said there's a terrorist loose in the

neighborhood? >> lock your children up. >> that's what water town is being subjectsed to right now. we're looking for a suspect right now in the boston marathon bomber case. il and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home.

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breaking news this morning, a manhunt for a suspect in the boston marathon bombing case. bertha coombs joins us from the breaking news desk with more. bertha. >> well, joe, the manhunt is concentrated right now on watertown, but it is really sening shock waves across the hub. lots of closings in boston. m.i.t., where the mayhem began last night, is closed today. as is harvard university in

cambridge. emerson in boston. boston university is now has it is closed as of about 5:00 a.m. this morning. the mbta in boston was shut down and now we are hearing that all activity in terms of amtrak in and out of south station, no doubt in the back bay, as well, is delayed because of police activity. let us get you updated on what happened. this has really been an amazing scope of violence overnight. it began in cambridge overnight. that is across the river from boston at about 10:30 p.m. an m.i.t. police officer was discovered shot and killed in his police cruiser. there had been noise and reports of shooting about 10 minutes earlier. after that, police say it appears that the suspect car jacked a mercedes suv and then began to flee. and police ensued pursuit. the driver of that suv was

released unharmed. some reports that they did identify themselves to him as the boston marathon bomber. one suspect at one point was captured on a 7-eleven surveillance tape. he is identified tentatively as suspect number two, the one that the fbi had put up the picture the night before the in the white baseball cap with the curlier hair. police gave chase to watertown during the course of that chase an mbta police officer was seriously injured in that pursuit. a shoot-out ensued at about 1:00 a.m. in watertown. one of the suspects was injured fatally. he was pronounced dead. that's what we know at this point, joe. as you mentioned, that search

continues. >> thanks, bertha. stay where you are. i don't -- we're going to need you. joining us on the squawk news line, former fbi investigator bill daily and so many things flowing around, bill. the chances of -- with what we've seen of these two individuals, do you think this guy gets taken alive? any chance of that inspect. >> well, it's just the authorities are doing anything they can to first protect the public, whatever that takes. if it results in some confrontation with him where he decides not to surrender, they realize the safety of the fellow officers are at issue. it's a soft and evolving situation. there's still a lot of unknowns as this is an active investigation and man hunt right now.

i think what we can point to is the impetus of this surfacing last night was the fbi releasing the photos of these two suspects as they were then identified and we're asking the public's help. so we might suggest that because those photos were released and everybody was out looking for them, it forced them and they were deciding whether they were going to go on the run, surface, and at this point, we don't know what their intentions were. there were ear explosive devices used. >> i was saying the other guy had an ied strapped to his chest. it's possible the other guy might not want to be taken alive. >> bill, hold on for a moment. we also have scott cohen. why don't you tell us what you're seeing the this point. >> well, we're seeing a lot of activity as far as the police

are concerned. but as far as daily life in watertown, it is shut down and this community is essentially on lockdown. this is a grave situation, but have asked people not to congregate, asked businesses not to open. and while that all goes on, we're seeing a fair amount of police activity. a special response team across the street from me. every so often, you see a database you see sort of a convoy of police cruisers come down here and for those of you who know this area, and i don't know it all that well, but we're at the corner kimble and mt. auburn avenue which is sort of the main drag in watertown and the focus of a lot of this activity. it's not your typical friday morning to be sure here. and a community very, very much on edge. this is the epicenter of the community on edge. it goes throughout the boston area.

>> scott, i mean, you see the police activity. is it strd centered in all sma area of watertown? we're trying to get an understanding of how wide this is. >> there are police everywhere. oeg down this treat here to parts unknown, i guess. there had been pictures of activity at different homes and things, the police were going door to door. one of the things going into this was this announcement to the community, don't open your door for anyone except a police officer and we will make it very clear that it is a police officer. that's how serious it was. a manhunt with an armed and dangerous potentially deadly suspect who is at large here. and there was the thinking, of course, all along that, you know, why watertown? perhaps they have some sort of ties here, knew where to go, and

was there a plan? and it is interesting, certainly, that all of this comes out around the time that the fbi released the photos. and while this was all playing out, they released some new photos, some very, very sharp photos with very clear images of both the two suspects that they caught at the boston marathon on monday. whether that fleshed them out or whether this was part of the plan all along. we don't know. we will see. and, bill, we've been wondering, at least speculating that there's only two. i guess there's no way of knowing, but it would obviously change the entire dynamic if it was more than two. but two men theoretically could have pulled this off. right? >> yeah. at this point, it is one of these things that is part of the overall investigation. although right now the focus is trying to find the suspect in the manhunt is going to be

looking who they might have made a connection with. was anything cognizant or assisting them. what was the larger plan? what was the motive behind it? are they from the united states or from elsewhere? a lot of these will be looked at quickly and with authority. once they have an identification, an address they're working out of, once they start honing back in, they'll be looking for all of those connections. before long, we should hopefully know their identity and further the investigation will continue to see if they were in touch with people, people provide them assistance, money, training, whatever it might have been. >> a lot of scuttlebutt underneath. not recordable, but it is not at this point pointing towards domestic. but, anyway, we don't know. and with what we've seen this week, we are not going to -- dedon't say anything about anything until you know. >> bill, we appreciate it. thank you for being available to us.

>> again, we've been following all the latest developments out of watertown. we've been bringing you up to speed. if you are just waking up this morning, this is a dramatic turn of events overnight. a shoot-out in watertown, massachusetts, after police followed the suspects they believed were the bombers from monday's boston marathon. they chased them from m.i.t. they followed them over to watertown. there had been a shoot-out again. one suspect is dead. the other is still on the loose. right now, let's listen in to 4r0 cable network. >> bridget reporting a couple of minutes ago that the aep is saying that the boston bomb suspects have been identified by authorities as being from the russian region near chechnya and they lived here in the united states for at least one year. we don't know how they know that, but certainly that will be a relative piece of information

that will continue to deepen your insight, too. >> it is good to get new information, but the top priority right now is to find this suspect. they are taking this very seriously. eileen, are you in watertown right now? >> no. i'm in downtown boston at the corner of com ab and -- >> we have some new developments we can tell you about right now. scott. >> reporter: well, all that we know is more police activity here. particularly the atf and according to nbc's kerry sanders, who is here in watertown, about 35 atq have deployed at a spot where authorities said earlier a device had been thrown. one of the hallmarks of this and one of the things that made it clear that this was not an ordinary armed robbery or car jacking was the enormous amount of police tifrt.

i was in downtown boston at 2 on the in the morning and haefr the sirenses. we woke you up. and so you knew that this was a big deal. that's what we know for now. you know, the way this police activity works -- >> we have something to tell you about right now. scott, this is being reported by nbc. we can report that the suspected terrorists are brothers this. he appeared to live in cambridge. one of them, age 19, the brother still being sought, has a massachusetts driver's license. this is being reported by nbc. apparently we can go ahead and report this at this time. >> you heard the local channel saying they are chechnyan. >> we don't know that. suspected trors are brothers, appear to live in cambridge. one of them age 19 has a massachusetts driver's license. this is a dramatic turn of events. we have been watching this all

morning long and through the night. for people just waking up, late last night in the boston suburbs there was a disturbance reported at m.i.t. police responded. police have m.i.t. responded. that officer was shot and killed. another was seriously injured. a police chase ensued. and put police enforcement agencies pursued them to watertown, massachusetts, a suburb outside cambridge. the watertown community has been on lockdown this morning. the shoot-out resulted in one of the suspects being shot. he eventually died from injuries. not only from the shootings but also from the doctors who operated on him this morning telling us he was in cardiac arrest. he suffered injuries with what was going off as an explosion. >> legal permanent residence. there's some names now, but we're not going to use them yet. there are names being reported.

and it sounds -- they are supposedly chechnyan. >> big business news. the news being that nelson peltz has taken large stakes in both pepsico and mongolese. $2.7 billion they put against both these companies. 13-f filing showing they began making the investments late last year. those statements show they have $500 million in mongolese. that investment has grown materially. $1.4 billion in pepsi. $1.3 billion in mongolese. pepsico out with a statement in recent weeks we have had meetings to discuss and consider their ideas and initiatives as

part of our ongoing evaluation of all our opportunities to drive long-term growth. we had talked to the cfo yesterday. i raised some of these issues about speculation about having an investment in the company. also about whether perhaps pepsi and maybe, we don't know, if nelson peltz is looking to spin it off and merge it. that has been the speculation. we will try to figure out where this is all going. that investment is now $2.7 billion between both companies. and i imagine that the stock is going to move on both as we try to understand what nelson peltz is trying to do. maybe possibly joining the board. conversations going on in that regard. a number of products where he has made out well.

we'll be watching both of those. >> apparently chuck todd through pete williams reporting the two guys were brothers, 19 and 20, both permanent legal residence. sur name tsarnaez. the younger of the two is 19. ezhokar. >> that's his first name. >> permanent residence in cambridge. one had a massachusetts driver's license. >> these are developments that started late last night. it was sometime after 11:00 p.m. we started getting reports. at first it was urn clear if this was linked to the boston marathon. authorities do believe that these two are the terrorists, suspected terrorists from monday's situation. they started off where they were

at m.i.t. there was a disturbance reported. m.i.t. police responded. and one m.i.t. police officer was shot and killed. the other was seriously wounded. there was a chase that went on. in the midst of all of this, there was a burglary attempt at a 7-eleven that these two tried to pull off reportedly. at that point police chased them to watertown, massachusetts. >> 32,248 residents. 300,000 sheltering. >> that's an unbelievable situation. to be waking up in these areas where you're told there is a terrorist on the loose. you are being asked to stay in your homes, stay in your homes, do not open the door for anyone other than a police officer. schools have been shut down. businesses shut erred. they have all closed classes, mitt, harvard, emerson college.

>> total 320,000 people are probably behind their doors, hunkered down. >> buses and subways shut down. police asked people not to conjugate to, wait on the platforms to take this. when they begin to reopen, they want people to stay indoors and stay away from this. this is an active manhunt. the suspect is considered armed and highly dangerous. we have reporters on the ground covering this. we will be continue to go update this. >> we are approaching the top of the hour. when we return, the latest on the ground up near boston and watertown. if you're just waking up, authorities are going door to door looking for a suspect. the younger of the two now reported to be brothers. we'll be right back. lients really appreciate our powerful, easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you.

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welcome back to "squawk box". breaking news overnight in the search for the suspects in the marathon bombings. one of the two suspects is already dead. a massive manhunt is under way for another residence of watertown and other surrounding areas have been advised to keep their doors locked, not let anyone in. the violence began relatively early. 10:20 p.m. m.i.t. officials said gunshots were reported on cambridge campus. they shot a police officer and car jacked a mercedes suv at gunpoint. keeping the vehicle's owner hostage for a half hour. then he was released a lot a gas station.

anyway, thankfully. and police pursue the explosive devices. can you imagine seeing this? they were reportedly thrown from the car. some didn't explode. they're laying around. that led to a shoot-out in watertown. one had shrapnel wounds. he reportedly had an ied attached to him. the other still is in the area. emerson, b.u., harvard canceling today. they said we have decided to cancel classes today. all employees are encouraged to use their best judgment about whether they are prepared to come in work today. any absence today will be considered excused. m.i.t. is working now to plan a

gathering later today on campus. these guys are supposedly residents of cambridge. >> two brothers. >> there's the harvard square area, kendall square area. i'm not sure where they reside. csaraev is the last name. >> do we know if they are students? >> we don't know. >> one had a driver's license. >> oh, becky. >> scott cohn is in watertown, massachusetts. scott, what can you tell us at this point? >> great deal of police activity, particularly on the main drag. they were all in a particular neighborhood which should be a matter of a couple miles from

here. everybody else was told to shelter in place. we're sort of confined here to this part of town where we have seen a lot of police vehicles and vehicles of all types really going through the edges perimeter where we are and heading to this area where it does seem to be this manhunt is now concentrating. and we also have hearing reports from people here in watertown of officers going door to door, taking down information, telling people they need to stay in place. they don't want them going anywhere. they don't want evacuations at this point. they want to make sure everybody is still so they can isolate the suspect. to repeat, the suspects in the bombing are brothers. 19 years old. he has a massachusetts driver's license and is a cambridge

resident. it is unclear from this information whether that is the surviving brother right now that police are looking for. it appears that is the case. and reports are they are chechnyan in origin. it all seems to be concentrating right here in watertown. but the whole area really, as you have been reporting, is a lot of ways on lockdown. college campuses canceling classes, transit shutdown. and 320 residents told to shelter in place, stay where you are. as police said, this is a grave situation. guys? >> hey, scott, before you go, is the focus still on the one brother individually? and the reason i ask the question, we have asked the question all morning whether there's any form of parallel investigation going on. >> if there is that going on,

they're not telling us. you know the fbi released images of these individuals and said they were suspects. they wouldn't go beyond that. so as far as we knew all along, two people had been identified as suspects. but whether they were involved in some broader conspiracy, a lot a will depend whether they can take this one suspect alive and get that information out. clearly they had some know-how in between them to do what they did. but the question is whether they were working with anybody. as we reported earlier on this morning, both individuals had international ties. but now it appears there were local residents. we don't know their citizenship. and they have some military experience. so they had their own know-how. whether they had backup, that's a perfectly legitimate question that with he don't know the answer to yet. >> of course we'll be coming back to you throughout the show and throughout the day.

in the meantime, bertha has a rundown of the situation. bertha? >> let's put up a map where all of in is happening. watertown is where scott is. that is where the police shoot-out ended at around 1:30 this evening. around watertown, draw a circle. nearly 400,000 people now are under lockdown. police are asking them to stay in place. it began in cambridge. reports of shots fired along the m.i.t. campus. 10:30, an m.i.t. police officer was found shot in the head dead in his vehicle. then the suspects appeared to have car jacked a mercedes suv and a pursuit ensues, beginning in cambridge. it would ultimately end in watertown. police give chase. at some point police discover that one of the brothers, one who remains at large, the 19-year-old, was captured on a 7-eleven surveillance tape. apparently they tried to hold up

that 7-eleven. mbta police officer was seriously injured in this pursuit and shot as well. 1:30, the shoot-out take place in watertown. one of the suspects was shot. he was transported to beth israel medical center where he was pronounced dead. he had an ied strapped to his body. during the course of this pursuit and shoot-out they were also apparently throwing out explosive devices from the car. that manhunt under way since early this morning. as of 5:00 a.m., police shut down the mass transit in the hub. that that is going to impact thousands, hundreds of thousands of people who use that for transportation. as we mentioned, all the major universities have now said they are suspending classes today.

boston college, boston university, emerson, harvard and m.i.t. as well. we haveeard disruption of amtrak as well between boston and providence. so all of boston today very much riveted to what is going on here. and i would imagine not just those communities, watertown, boston, belmont, newton. all those folks are being told to stay home today. this is something that is going to be interrupted. it will not be business as usual. in fact, deval patrick asked people to use their best judgment. so many lives being disrupted by this manhunt. >> it's not just subways and buses but amtrak suspended coverage between boston and providence at this point. so obviously this is affecting a huge swath of people.

terrifying news. back to bertha in a little bit. editor of "the boston globe", boston.com. ron, we have been sending out a lot of information. what's the latest that you're hearing? just give a sense of what this means for boston at large. >> well, first, thank you for being here. first the biggest news is that police have identified the surviving suspect, the person they are actually looking for and that's the 19-year-old apparently from russia, near the chechnya area. we have confirmed through sources that both suspects were indeed brothers. we have one source telling us right now. but it's being described as a very grave situation here in boston. there are s.w.a.t. teams and police all over the west side area effectively going door to

door in the area looking for suspects -- or looking for the suspect rather. there are about six towns, including watertown, effectively in lockdown. they are telling residents, keep your doors locked. do not hope them for anyone unless it's a police officer and you're sure he or she is a police officer. and drivers who are in the proximity are being told not to stop for anyone. just keep on driving. >> what has this meant for boston. >> the city mood has changed. it went from shock and awe to disbelief. and at this point i think bostonians are rallying. they're getting together, united and they want to see this come to an end and justice be brought to the suspects.

>> i imagine there may be surprise these two suspects have been living in boston in the area this entire time. that's got to come to a shock as well. >> it does come as a shock. the situation is clearly evolving. we don't have a full story yet. we expect a story to unfold very quickly and learn why these people were actually here, were they actually m.i.t. students. were they in this country with the intent to do some harm? it's all to be determined. everyone is looking for answers at this point. >> why m.i.t., because of the initial incident? >> right, exactly. it's really too early to tell whether or not they were students. >> i know where that building is.

it's right on mass avenue. i went there. initially i was thinking where it was. it's right neck to the harvard coupe, the bookstore. >> it's close by. and just looking at the age of one of the suspects, 19-year-old, you could easily assume that he was probably a student in the boston area. but, again, too early to tell. and we're still confirming that information now. >> when you said whether they were here to do harm, that sounds -- i guess what you're saying is whether they came here with the intent to do harm because apparently they were here to do some harm. you're saying did it originate to do harm or happen once they were here. >> well, that's right. they have been referred to as terrorists at this point. what their intent was, how early this intent was formed is yet to be determined. >> we think of boston as a

cosmopolitan city. a tight-knit community. it also has the distinction of having all these universities that are in such a close area. and i just wonder the soul searching that must go on particularly for a town that considers itself to be a hometown and small town feel. >> you're right. it is a town made up of a lot of different neighborhoods that combine into one good city. an educational mecca, health care mecca. we're an innovation economy mecca. and this may have made us a likely target for what happened at the boston marathon on monday. >> thank you very much for joining us. he is with boston globe, which has been putting out a lot of the information we have been

following since monday. >> dow looks like it would open up 22 points. s&p up 8 points. nasdaq by 22 points. and a business story of notes and breaking news. dell's special committee is confirming it has received a notice from blackstone group. sit withdrawing from the bidding process. blackstone will not submit a definitive proposal to buy the company. they submitted an indication of interest for 25eu billion offer in march. a letter saying that it "found a significant number of issues that surfaced since we submitted our letter of proposal on march 22nd." specifically i should note an unprecedented 14% market decline, the steepest drop in history. they are now saying is inconsistent with management's own projections for growth. ♪

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on the phone now is senior fellow at the independent institute. how do you describe the last 24 hours, chuck? >> first, we have to be really grateful for all the efforts of law enforcements to track these

guys down. this all happened very quickly, all things considered. i saw what was going on as you were all unfolding it. i don't know any more really than what i'm seeing on television. still chaotic and dangerous situation in massachusetts. >> keep coming back. it's bad one enough is on the loose. hopefully these two guys were acting alone. you just wonder whether they were enablers or others that might have helped at this point. of course they're not on the run right now. maybe they're not as desperate. >> i think there's several concerns. we know these guys are capable of building ieds. do they have more and can they detonate them? and is that part of how -- the

lone remaining may try to effect an escape route. the other important thing you brought up, are they acting alone? if they had help, from whom and are they hear in the united states or is the help from overseas? so there are a lot of still unanswered questions that are very important to understand in terms of understanding whether or not this is a threat that is actually dissipating as we are watching it here now or weather or not it's something to be worried about and be vigilant about because they're not alone and there may be other actors or devices we're not aware of. >> the materials required to put together these ideas you just said two people could create them on their own. in terms of getting the materials, easy, hard? >> ieds are easy.

>> in terms of actually getting hold of the materials. >> all the materials you need are perfectly legal. pressure cooker. nothing illegally about that. some sort of black powder for the charge. nothing inherently illegal about getting a hold of that. ball bearings, nails or whatever you want to use for shrapnel, nothing illegal about that. what is what makes an ied so deadly. all the materials are regularly available. none illegal by themselves. and they only become a weapon when they are combined and used in the way that they were used in boston. another great example of an ied is timothy mcveigh's truck bomb in oklahoma city. nothing illegal about what he bought. eye the quantities and being able to combine him and the technical know-how of putting it

all together. >> we asked this question last hour. how do you try to take this last suspect alive? >> you know, i'm not in law enforcement. and i don't want to speak for law enforcement. i think you had another guest on earlier talking about the primary concern is the safety of the community and the safety of all the other law enforcement involved. taking him alive will be largely up to the suspect. if he's armed and has an ied strapped to himself, he is the guy in control whether he walks out alive or whether he takes his own life. >> definitely we would want to talk to this guy. you would hope somehow we get this guy. >> for a lot of reasons already discussed and your previously caller ron talking about his motivation, why did he come here and do this? did he come with the intent of

doing this or the idea to become a terrorist happen here in the united states and why. all of that is important. and we will only know if we capture him alive. >> and people over there sent him, and if they're still over there. >> and, again, why is it -- is it a personal vendetta? is this a political vendetta? are there other people involved that we need to worry about and be on the watch for? >> hey, charles, there's been a lot of speculation about whether he received -- these gentlemen received help from overseas, training. >> military. >> whether they have been trained militarily overseas. the remaining suspect is a 19-year-old. it makes you wonder what is being done in the potential terrorist camps. >> the chechnyans are known for

doing that. >> kids are trained at an early age. they have identified these two gentlemen coming from chechnya, which has been a war zone forever. the likelihood that they received some sort of military or paramilitary training is probably relatively high, especially given their ability to fashion together different improvised explosives. >> you pointed out vicious circumstances. >> well, the russians are even afraid of the chechnyans. these are not nice people. >> thank you for being on. >> thank you for having me this morning. let's take a quick check on the markets. u.s. equity futures are looking tphet green this morning. we do have green arrows across the board. the dow, s&p and tphas deck all

looking up. "squawk box" is going to be right back after the short break. ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps.com you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need, the instant i need it. can you print only stamps? no... first class. priority mail. certified. international. and the mail man picks it up. i don't leave the shop anymore. [ male announcer ] get a 4 week trial plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again.

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area of watertown, massachusetts. this is the areas and the communities surrounding boston. there is an active manhunt under way for the second suspect in monday's bombings of the boston marathon. the first suspect has already been killed in a shoot-out early tphorp this morning. the second suspect is on the run. police have been telling people to stay in thur homes in watertown and the surrounding townships. this has been playing out since 10:15, 10:20 last night. it took place near m.i.t.'s campus and went from cambridge to waterbridge. the buses and subways in boston have been shut down as well. people are being advised to stay inside, stay in their homes and stay away. the mayor and actually the governor of massachusetts has told people that businesses should decide whether they want to be open or not. logan airport is operating under heightened security. amtrak shut down everything from

boston to proof deposits on its line. obviously this is disrupting life in all of boston and the surrounding areas. joining us on the phone is art hogan. he had an interesting time getting into his office. what happened on your way in this morning? >> hi, becky. the communicate from south boston was an adventure. every fifth car can was an unmarked police car heading into the western suburbs i assume. the response has been incredible. so it is, you know, a very fluid situation. and the response and the amount of -- both police and military is very extreme. as they look around the city now, every other block is getting a couple of policemen and dogs in a very that's very, very quiet for what would otherwise be a business day. >> you're lucky you're in the south shore. i figure if they car jacked in

cambridge they must have gone right up mass pike to get to watertown. >> yeah. clearly the path here was west. so heading m.i.t. west, brighton, cambridge areas. >> there's an exit there and a toll off the mass park. >> that's exactly correct. if you think anybody west of the city that has to come through that area shouldn't even try to make an attempt in here. logistically it's going to be impossible. >> art, you made it to the office. has hazard or other companies in the area put out notices like some of the universities in cambridge suggesting people not come in to work obviously with the transportation issues, that's part of it. but to have your own office say you shouldn't be coming in, that's a whole other matter. >> it is a whole other matter. there's two levels to think about. logistically it's going to be impossible for a lot of people to come in. the t is shut down.

anybody who depends on mass transportation there is no choice. most companies will, you know, make that a personal choice. if in fact, you think it's best to stay at home, that's the thing to do. remember, this is a situation that's happening in real-time. they are made immediately. announcements are going out to that affect. >> how many people on the trading floor, then? >> we're fully staffed right now. we're in the financial district of boston. it's well removed from the western suburbs for sure. but it's very much dependent on what the route is to get here. so if you're coming from the west, you're not making it in today. if you're dependent on massing transportation, not making it in today. the city is very, very quiet. >> we have been watching the markets. there was a lot of activity early this morning. but it seems like at this point

things have really slowed down. not as much trading activity taking place. i imagine people are watching the pictures just like we are. >> it's going to be a key focus on an otherwise slow friday to begin with. it's a very quiet day to begin with. there will be a key amount of focus as the sun rises and in real-time. >> they know where they live? they know they live in cambridge? >> one has a driver's license. >> police shutting down norfolk street. >> i did see that. the suspect who is still out there has a massachusetts driver's license. >> so you would want to go in their house too? >> yes. >> but you would want to be very careful. >> i don't know if those are the pictures we're looking at now. i think this is stillwater town.

>> if you're just waking up right now, let's bring you up to speed on what's happened overnight in the search for the suspects in the marathon bombings. one of two suspects in the boston marathon bombing is tkefpltd a massive manhunt under way for another. residents of watertown advised to keep their doors locked and not let anyone in. m.i.t. officials said gunshots were reported on cambridge campus. two suspects fatally shot an m.i.t. police officer and car jacked a mercedes sport utility vehicle at gunpoint. the victim was released a lot a gas station. as police pursued the vehicle, explosive devices were reportedly thrown from the car. some of the devices did not go off. littered the streets. that led to a shoot-out. one suspect was shot and died

later at the other. the other fled and is still at large in the watertown area. we believe both were brothers. harvard, m.i.t. and emerson all canceled classes today. here's a statement sent to students earlier this morning. similar statements going out from others in the boston area. in consultation with faculty, chair sam allen and we have decided to cancel classes today. use your best skwrult as to whether to come in. m.i.t. is work to go plan a gathering later today on campus. once we have determined the time and place we will communicate to you all. >> how politically correct, we will have a gathering. >> we are watching the markets this morning as we deal with this developing situation in watertown, massachusetts. green arrows across the board in terms of where the markets look like they're opening up.

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miami police chief and former nypd deputy commissioner. number two spot in new york. right now i'm not sure exactly what's happening in watertown. what do you think you can describe at this point? a lot of caution i would imagine. >> well, absolutely. these two two characters beginning monday at the end of the race with the bombing and then the conduct last night, you know, they are hell bent on causing as much damage and high body counts as they possibly can. and clearly, you know, there were reports of the gun fight and how the number 1 before he got killed was extraordinary. it's not what you're used to. you are used to them running away from you, not towards you. call it suicide by cop. call it whatever you want.

extraordinary action. the second guy really poses a huge threat. you don't know if he has other cohorts in that area in new england or what kind of guns and ieds available to him. so police have to be very methodical how they capture this guy. literally four or five townships have been closed down. it's likely to be cautious until they get this guy. >> high value, john. this is a guy you would do everything possible to try to talk to this guy after you finally get him, right? and it's up to him most likely. he may not be ready to be taken alive. >> if you look at what the chechnyan rebels have done just

in russia alone, they're pretty brazen or careless or crazy. the grammar school in 2004. and then the whole series of other reckless assaults resulting in high body counts. and they didn't seem to care if they would get killed in the process. so these chechnyans they have an affiliation to al qaeda. some trained with osama bin laden in the late '80s. these folks are hard-core. hopefully they get this guy alive and that he talks. he obviously gives up the motives and also who is sponsoring, the two guys, a whole host of intelligence could be quite viable going forward. >> hey, john, you bring up an interesting point. as someone who served as former

police chief of miami and second in command in new york stickers you are used to dealing with a melting pot of people. after 911 we started to look a little differently at things. you've got to wonder if the suspects being id'd here in this situation, the idea that it could be people from chechnya doing this, how does that change the situation for law enforcement officials and frankly for citizens in these melting pots as well. >> by virtue of the fact you think of things like new york or boston, the depictions of these two guys, they look like any two students you see in boston any given day. they just look the part. these police officers will hurt themselves if they follow into the shrapnel of trying to profile. you've got to leave -- you have to leave it wide open. you really need to develop as

good intelligent and monitoring situations that you can monitor these people ahead of time and hope to prevent some untoward things from taking place. kelly in new york has done a fantastic job. he has received some criticism. this is a guy who interrupted nine or ten individual blots in new york city. he has a network set up. this is a dirty game. you know, there's nothing wrong with comma commissioner kelly is doing in new york. he's making the city safe. he's come under a lot of criticism. you pick on innocent people. nonetheless, there's a certain amount of elbow room. >> how capable are other cities in the country of replicating what you just talked about in

new york, also not just in terms of the skills that are involved but the costs? >> well, i was in miami and new york. not even close. no one can replicate what's in new york -- >> should they be? when you think about some of the larger issues. >> new york now -- boston is a target this time. the police foundation, a lot of private money that helps fund the anti-terrorism. i think new yorkers understand respect and support the efforts there. in other cities, you know, that's not necessarily the case. you have the manpower, resources, money, equipment.

ray kelly is nice to pull off something that they can't do anywhere else in the world. >> john, thank you very much for your time this morning. we do appreciate it. the former miami police chief. john, thank you very much for your time. appreciate it, sir. the former miami police chief. back to scott cohn in watertown, massachusetts. scott, can you tell us more about what you're seeing on the street today? >> well, it's sort of a parallel situation, becky. about 10, 15 minutes ago, we saw two but the loads of boston city police officers, not in any sort of special gear, but going into the neighborhoods here. meantime, a few miles from here where the manhunt seems to be concentrated. nbc's kerry sanders reports eight up ended humvees going in there, along with police presence as they try to bring this manhunt to an end, obviously ideally a peaceful

end. but at the same time they want to keep everybody in place. they don't want people roaming around or put themselves in harm's way just for curiosity sake. hundreds of people are asking to shelter in place. stay where you are. don't go anywhere. don't get curious here. we want to get it covered. and it seems to be they are concentrating the efforts now in an area a few miles from here, which we are also watching very carefully. >> scott, one of the things that has been difficult to try to keep on top of it, the information, what can be verified, what can't be verified. have the police said anything else at this point? >> no. they basically have said just that. and it's worth getting into that a little bit, becky. a lot of people nowadays can listen to scanner traffic on the internet. >> right. >> and i was watching twitter

overnight. a lot of people were just -- obviously not journalists, were just reporting that scan per traffic as fact. that's noise. a lot of people are looking at noise and drawing conclusions from that. you can't do that. and one of the things the police need to do and part of why this is such a difficult effort is to try and keep the information on target, not letting misinformation get out there. and, again, put innocent people in harm's way as they try to isolate the suspect and hopefully take him alive. >> this is a crazy time. i'm looking at a facebook page. but presumably i think is the younger brothers -- it's all in russian. pictures. >> it's difficult because some of these things get faked and get put up. >> i know. but you see it. the thing is, the spelling is slightly different but basically the same. you can see dhozar. >> guys? >> yeah, scott.

>> we're just getting word from nbc news that the other location where they are staging media here there is going to be a briefly shortly. massachusetts governor deval patrick will be attending that. whether that means we've gotten some sort of resolution, we don't know. but he will likely reinforce that people should stay put for now. within the next five to ten minutes we will hear some more about that. >> scott, just a brief break in here with some additional news -- >> this is coming from pete williams. >> this is coming from pete williams at nbc news, that they have been -- he's been told that the brothers came with their families to the united states in either 2002 or 2003. one of them, 26, born in russia. became a permanent resident in 2007. the other has a massachusetts driver's license and is a resident of cambridge.

>> one was how old? >> one is 26. the and the other perhaps is 19. but unclear. unclear. >> the birth date we had on the massachusetts driver's license would make him 19, 19 1/2 to be more specific. yeah. july 1993. so that's interesting new information. because it was earlier information they were only a year or so apart. there was some question about how long they had been in the country. earlier reports from pete williams were that it was at least a year. and now we know if that report is correct that the family had been in the country 10 years. >> scott, thank you very much. we'll check back with you in just a little bit. >> matt: meantime, we have ambassador woolsy on the line. mr. am bass dorks you have heard everything that's been happening here. what is your best take about a lot of things we don't know at

this point. what does this lead you to believe about this situation? >> well, it's a moving target. and you may remember a couple of years ago the large number of russians that were put into the u.s. by the kgb to live here and have careers here and so forth and perhaps to be called upon some day to be used. and i think that one thing that is very interesting is where these folks are from is still not entirely clear. one of the names sounds chechnyan. maybe some part of arussia. who knows? if they have a planned operation with the kind of explosive device that's in the al qaeda online website, has been for several years, dual explosions, all of this kind of sounds very

much like al qaeda type operation. it's pretty unlikely this is some russian operation. it's just very hard to tell until we know more about their backgrounds. >> mr. ambassador, the very latest being reported by pete williams from nbc, this has just been reported in the last several minutes, the two brothers, one of them was 26, born in russia. he became a legal resident in 2007. that was the older brother who was killed early this morning. the other suspect was born in july of 1993. he is the one identified by the fbi as wearing the white hat in the pictures we have been seeing. he has a massachusetts driver's license and is a resident of cambridge. he was apparently born in kurzic

stan. >> there were those but i was thinking about the ones a year or two ago. a large number of them released out of russia. >> so this would be a situation, again, there's a lot we don't know. but that's an incredibly interesting theory we have heard that put forth. the idea these could be chechnyan sleepers. >> where did this man get his training? he was 9 years old when he came here. >> we have been taken out of the u.s. for a time and trained by al qaeda. or outside affiliates. it's one of the things they have done. it's just really too soon to tell. but having been here that long it sounds like they came -- one of them anyway, a year or two

after 9/11. but that would have been pretty early for this possibility. >> we have seen them operating in the united states. what would drive them to the united states? >> only if someone had control over them or their families and ordered them to do so. or they were true believers in some cause. it's really very speculative at this point. i think that one just really needs to know about both of their families backgrounds, education, travel. and at that point people could start fitting together whether one or both has been here for some time with dastardly plans or whether this is some kind of, i don't know, late developing anger towards the u.s. the thing that makes me think

it's ideological in part is the target. like 9/11 when the target, if it hadn't been for the heroes on flight 93 would have included the congress. but these are emblematic of the united states. patriots day in boston commemorates the american revolution. and it is something that an ideological enemy, not just someone who was crazed for workplace violence or something like that, would go at it. you remember the bomber back in '96 at the olympics in atlanta. >> yes. >> he was sort of a right winged nut who was blowing up abortion clinics. and there wasn't any ideology at all. it's hard to say when you target

something symbolic of the united states you probably think the group you're part of probably thinks itself an enemy of the united states in some way. take this, america. that kind of thing. >> but mr. ambassador, i guess that's my point. to explain to a layperson what the beef the chechnyans would have. it doesn't appear we have that great of relations lately. what happened in the past that would turn their anger towards us? >> it's very strange. we're not the ones occupying their country. some of the islamist terrorists have been chechnyan. we need to know more about their education, background and history before you could make any sort of judgment. >> was there an event that

happened surrounding 9/11. at least one of them, according to our information, came as early as 2002 or 2003. was there anything around 9/11, again, working on that theory you through out before these were sleepers brought here for a long time. >> well, 9/11 wasn't the first thing that al qaeda did. it was just the biggest. but the first world trade center bombing back in '93. a lot of things they affiliated with al qaeda oren couraged by al qaeda or whatever. have brought off or tried to bring off the united states. and some of these have ludicrously been labeled workplace violence. hassan was giving lectures to

fellow soldiers about how he was on jihad. when the report gone written up it was all workplace violence. and the people who were wounded aren't getting purple hearts because it was workplace violence. so the u.s. government is sort of slow times if it doesn't fit the narrative to come up with a solution that suggests war on between us and the terrorists, particularly islamist terrorists may still be on. but i don't know if this is part of that. >> you made i good point. patriots day in boston. it wasn't because it was april 15th, tax day. >> no. >> it would have brought the militia idea, tax day, something

people were hoping for. >> it gives rise to patriots day. they move it around to have it on a monday. this is america's fight for freedom. this is not just a regular marathon somewhere in the u.s. ambassador woolsy, we want to thank you for your time this morning. certainly shed light and made us think of things we hadn't thought of before. >> thank you. good to be with you. >> r. james woolsy, former cia director. a lot of this information is still very new, fresh. nbc news through pete williams has been reporting that the two terrorists are brothers. one of them was born in 1993, july of 1993. he is the suspect still on the loose that police have still been trying to capture today.

he is the gentlemen -- or the terrorist wearing the white hat that you're looking at right now. his brother was killed earlier this morning. he became a legal permanent resident in 2007. we have been told the brothers came with their families from russia and kerzic stan. he pointed out, again, this is just early thoughts at these things. post 9/11 and potentially some of the sleepers that this could be a situation like that. >> the hysteria that followed 9/11, there were -- that was what later the people said we overreacted brought up there was a time when we were talking about 5,000 sleeper cells from the extremists on one side.

>> the incident we were just discussing going to raise issues all over again about whether there are sleeper cells, about people's security, about how people look at -- >> profiling. >> it's going to happen. >> immigration. >> gun control. >> it's going to cover the gamut. the irony is, you know, they voted on gun control this week. immigration is being brought forward right now with this. and you just -- the irony of it can't be overstated. >> these conversations are already taking place. we would assume from law enforcement officials. we speak with john timiny, former miami police chief and former number 2 in new york city >> translator: governor is apparently in that suv, governor deval patrick. he's going to address the media shortly. which is -- we're right in the middle of everything. that's interesting.

>> still a manhunt, active manhunt. police had been advising residents to stay indoors. >> 320,000 people. >> do not answer your doors unless it was a police officer at the door. you talked about mass transit being shut down. buses and subways have been shut down. also amtrak. logan airport at last report had been open for business today but under heightened alert. you can expect extreme security measures there. and, again, we'll keep watching this. >> developing story. the manhunt in the boston area for the second suspect in the boston marathon. here comes governor deval patrick. let's listen. >> i'm going to ask commissioner davis and state police to make a statement. we're not going to take

questions at this point. i know you have a lot of questions. obviously we've had a very rapidly developing situation. of course i've been briefed throughout the night. i think you know the basics that suspect one is dead. suspect 2 is on the run. we have an mbta officer who was seriously wounded and he's in surgery right now. we have were an m.i.t. security officer who has been killed. there is a massive manhunt under way. a lot of law enforcement involved in that. to assist that, we have service on the mba. that will continue tpl we feel it's safe to open all of that. we are asking people to shelter in place, in other words, to stay indoors with their doors locked and not to open the door for anyone other than a properly

identified law enforcement officer. and that applies here in watertown where we are right now. also cambridge, newton, belmont and at this point all of boston. all of boston. this is a serious situation. we're taking it seriously. we're asking the public to take it seriously as well. and assist law enforcement by following those simple instructions. we have every asset that we can possibly muster on the ground right now. they are doing a terrific job in working in concert with each other. we are going to need the public help us help them stay safe. >> thank you, governor. as the governor said, this is a rapidly developing situation. within the last half hour we received information that i have communicated to mayor menino. he has asked me to come here and tell you that the shelter in

place recommendation has been extended throughout the city of boston. there's a lot of information coming in. we're working very closely with federal authorities in washington. we are examining all databases. all potential leads and they're in offices around the city right now. please be patient with us. work with us. if you see anything suspicious, let us know. we are trying to make this safe as quickly as possible. but this is an ongoing situation. i want to stress that. this is an ongoing situation. >> colonel timothy alvin. first of all, i want to say thank you to each and every one of you. you got the message out to the neighborhood. i want to ask you to continue to do that. our number one priority is with these neighborhoods here in watertown and making them safe and finding this individual. that's what we're committed to. we need more time. we're making significant progress up there. but it may take hours to do this. so please bear with us.

i know there's a lot of questions. we'll have plenty of time to address those after this. but for right now this is about public safety. this is about the watertown neighborhood. so please give us that leeway. we'll be back shortly. thank you. >> started with governor patrick and several law enforcement officials, the police chief. >> mayor of boston and colonel of massachusetts state police. this is very important. this is an active manhunt. the colonel with the massachusetts state police just told us that it may take hours to do this. at this point they have expanded. it's not just watertown and surrounding communities that they are asking residents to stay inside. they are saying all of boston at this point, asking them to stay inside. >> keep the door locked. >> right. >> obviously with an active manhunt they want to make sure they can go door door. >> and if you have a handgun, get it. probably shouldn't say that,

right, andrew? but you might be happy if you did have one at this point instead of a baseball bat. i'm not going to get you sos anything. i'm nudging you a bit. tough week. >> there's going to be a political debate about gun control and immigration reform. >> with this as the back drop. >> with this as the back drop. but we were talking to our friend at hazard this morning. people were going into work. >> art hogan had told us it had been a difficult commute coming in. they had a staff trading desk in his office in boston. they're not going to be able to get anywhere. the news conference we just heard, the officials there asking all of boston at this point to stay inside and allow them to do their work. this is an active manhunt, still seeking the one terror suspect. and the colonel with the massachusetts state police

speaking it may take hours to do this. >> i wish we had an update in watertown. >> we have seen all sorts of images. >> we will check in with scott cohn. >> they know where this guy is close to being. >> that would be my guess. if you're now asking all of boston to stay inside. bertha coombs has the timeline of how we got to this point. >> the timeline. and we now have the names, becky, as well with the two marathon bombing suspects. they are brothers. 26-year-old tamerian tzaraez. born in russia. the one who remains at large is his younger brother dzhokhar tzaraev. he is wearing the white hat when the pictures went out last

night. massachusetts driver's license and a resident of cambridge, massachusetts. he was born in kurzic stan. cambridge, across the river from boston. campus of m.i.t. last night shots were heard fired at about 10:30 last night. m.i.t. police officer discovered dead, shot dead in his police cruiser. the suspects then car jacked a mercedes suv and a chase ensued that would lead police to watertown. during the course of that chase the suspects apparently also unloading explosive devices, setting them in their path towards the policing. mbta police officer was killed as well. we have more developments. i'm going back to andrew. >> bertha, sorry to interrupt but we are getting the boston chief of police as a briefing as well. >> he is currently not out of

the hospital. >> can you say where he was shot. >> it sounds like this was an update telling us about an officer shot we're guessing at this point. it was a very brief statement. we will continue to look into that. in the meantime, scott cohn. >> scott cohn is in watertown live. let's get to scott. >> okay. you will see in a moment, guys, another -- a lot of vehicles. three bus loads of police officers as they continue to try and lock things down here. and a man hunt that now seems to be spreading beyond just this area. and there's also now an alert. even as far as new york city looking for a particular vehicle. just out of abundance of caution, not that they necessarily think it will be in new york city. let me read you this now. they are looking for a gray honda with massachusetts license plates. if you're in this region, gray

honda with massachusetts plates. 316esr. and there you see the law enforcement assets continuing to flow into this area as they try to make certain that not only everybody stays in place but that they can literally go door to door and try to find this suspect who is still at large. >> all right. >> you never read into anything, scott. what does that mean? he ditched the suv and has a gray honda with massachusetts plates? so they're in watertown but he may have fled watertown? >> well, as you heard, they're talking about the entire boston area. >> he took it beyond there, though, just now. >> yeah. this is from our colleagues at wnbc are saying they're on the lookout. and it's really more out of abundance of caution because it

certainly -- >> right. you mentioned a gray honda. do they know what kind of honda it? there's lots of hondas. i imagine other people will start looking at gray hondas. all types of hondas. >> no, it doesn't say that. all i have is gray honda. we will certainly give you more as we get it. again, just physically he wouldn't be there yet based on the events that happened overnight. but it's just -- this is spreading out. >> right. >> you know, there was the suggestion based on events it certainly seemed they were narrowing in on a particular area. and they may still be doing that. but they also widened the dragnet. i'm not going to draw any conclusions from that. but we'll just tell you what the facts are. >> scott, that jumped out to me as well that they are asking all of boston residents to stay inside. that out of abundance of caution or something more than that.

it is speculation beyond that. i was surprised they didn't ask people to do that earlier today. >> well, they did. then kept on expanding. they have been telling people to shelter in place in all of these different areas. they're saying, you know what, everybody just freeze for a little while and let's see if we can find this person. and then it becomes a waiting game really. so we'll see. >> all right. thanks, scott. i guess the idea that someone is cornered somewhere in watertown, not necessarily the situation that we have right now. joining us to talk more about chechnya and get some background there, "squawk" news line is ian bremer. two suspects identified as brothers from russia near chechnya. can you tell us what that might mean? up to this point, ian, they have targeted -- these guys targeted -- talking about the

chechnya rebels, moscow many times. would this be the first time that anything like this has happened? >> well, it would be the first time if in addition to being from chechnya they were also affiliated directly with with some sort of chechen militant group. let's keep in mind that when you talk about folks engaged in international terrorism there are efforts to bring them in from all sorts of regions around that area. what we need to know is whether or not this is affecting just individuals. and if they're not, what kind of organization are they affiliated with. it doesn't necessarily mean they're affiliated with a chechen organization. but if they are, absolutely, it would be the first time we have seen this conflict spread beyond the cop fines of the former soviet union. >> ian, just so people know,

there are chechens that want to have a breakaway islamic state in chechnya. that's what their motivation was for a lot of the violence. but it has been hard to do. the guy in charge now put that down with an iron fist. >> very brutally with direct support not just from putin but the russian people. there's still a lot of fighting and violence, bombings in chechnya. a very dangerous place. to the extent we have organized kh chechens in the united states. they have been one of the most notorious behalf pheaas. operation in and around new york and other parts of the country. but absolutely nothing like this. >> i mean, i'm just reading through some of this. the russian officials in the past have claimed that some of the insurgents were al qaeda

linked. they have had a hard time having people believe that. they will see what happens here as we connect all the dots. but that's the last sentence here. the allegations of the role in the boston explosions would reinforce long held claims by russian officials that insurgents in that area were linked to al qaeda. >> we need to say that very explicitly. when russians talk about links to al qaeda by chechens what they are trying to do is justify their own efforts to go after these folks and demonize them. and let's face it, a links can be anything as soft as a phone call. they are not organized in the way the al qaeda in the arabian peninsula are. at this point what we are really looking at are a couple of suspects who hail from a part of

the world who has been restive in part because of a longstanding war for independence within the broader russian federation. >> stay with us. we're going to continue this conversation. scott cohn is standing by and apparently has talked to people about the region as well. scott, what have you heard? >> well, we got off the phone a short time ago with dr. sherwin moore of the university of birmingham in england. he is not many expert on this region. and one of the things he brought up is the idea -- and we don't know this -- the idea they may not be chechen. they may be of russian accident. he wouldn't be surprise by that. as ian has been saying, it would be very, very unusual for that insurgency to spread to the west. you put all that with what pete

williams has been reporting about when the family came to the u.s. they've been here for 10 years. which means these brothers were children when they came here. if, again, this is all you true. so they may not be as directly tied with an insurgency. they may have been radicalized in some other way. >> can i tell you something, though? this is a media advisory that has come from the mayor's office, mayor of boston who is saying the city of boston is urging city wide shelter in place. as this investigation unfolds we are advising all residents city wide to shelter in place. please understand we have an armed and dangerous person/persons. that raises the question. is this a single person or is it multiple? because this release that comes from the players office says we have an arld or dangerous person with s in parentheses. so person or persons.

he said please be patient and use common sense until this person or persons are apprehended. scott, that's interesting. they could be just operating again from an abundance of caution. it raises the question that is on a lot of people's minds. >> it's what we have been talking about all morning. are these two acting alone. and the point we made earlier is the fbi released pictures of two suspects. they never said these were the only suspects. they had a lot of video images at the scene. it doesn't necessarily follow that all the people involved in this were at the scene. so that is a very interesting development they're talking about, suspect or suspects at large. and that may also help explain why this dragnet widened so much. >> maybe this car. >> maybe they're looking for more than one and the idea of the car. since monday, there's been a lot of these bolos, be on the

lookout for individuals and vehicles. that's what that car was all about. they're still trying to gather as much as they can. and, again, we should never draw the conclusion that it was just these two. not that anybody did. but that was what the fbi released, pictures of two suspects, never saying it was the only two. >> ian still on the line with us, ian bremmer. >> a couple points. one thing interesting about the north caucuses tie, is watertown, massachusetts in particular is really where you have the highest concentration of individuals from that area of the world. it's by far the largest armenian community in massachusetts. but also folks hailing from chechnya and neighboring small republics. to the extent they have friends, community likely you to know them, be confederates are sheltering them. quite likely they are going to see that kind of -- that would be would be a town you would

look at first. i'm sure investigators rrg doing that. also, it's one of the largest populations hailing from the north caucuses in the entire of the united states. you also have southern california, a little bit of new york. but for a lot of people wondering why boston, if these are the suspects and this is where they're, from boston would be the natural place you would potentially go after. that's an interesting early to say at this point. that's the first thing i would be thinking of. >> this whole chase started in cambridge. and the two suspects were living in cambridge. it could be by accident they ended up in watertown when they were on the run. >> no question. watertown is a place -- working the investigation right now, watertown does not sound random. that's what i'm telling. >> you potentially radicalizing people when they're young this,

situation suggests if they did come to this done in 2002 or 2003, people who would have been, you know, 16 years old and 9 years old at the time. >> yes, that's right. and, you know, let's face it, we're talking about not just a question of who they might have fallen in with and who they listened to. we don't know if this is a question of a broader organization or if these are just a couple of very disturbed young people who had the same kinds of unfortunate backgrounds we have seen so much times when columbine, newtown or others. there's air very long long sliding scale here we will be unpacking i'm sure for months to come. >> ian, thank you very much for joining us today. ian bremer has been on the phone with us. he does raise some points we hadn't considered before.

joining us now is peter brew formerly with fbi's new york office. he was head of a s.w.a.t. unit while there. thank you for joining us today. your thoughts on the latest developments. >> well, obviously, this is a massive manhunt. one that's been unprecedented in recent times. law enforcement assets, the resources being utilized. and i'm sure the number one priority here is to bring this individual in to apprehend him safely without any further harm to the general public. that's the number one priority here. that's what they're trying to do. >> and in terms of the manhunt, you're right. i can't think of another instance where alerts had been put out from boston to new york city. and this could be an abundance of caution. z but to hear be on the lookout alerts, to hear concerns raised and to have the mayor of boston telling all residents, all residents in boston to stay

inside at this point. i can't think of another time when such a large area has been shut down for a manhunt like this. >> as i said, every resource is being used both from a technological standpoint, physical standpoint. the bolo alerts, the use of cameras. they're getting to know these individuals a heck of a lot better than they did the last 48 hours ago. who they may be with. where they frequent, where they go, where they travel to. a number of things have been going on behind the scenes in addition to just physically looking for this individual. but, again, the emphasis is, and, again, what the mayor just emphasized before, was the general safety of public -- the safety of the general public is paramount, hence the lockdown. they want this individual in

custody without any further harm. >> what do you read into it that first this was a lockdown to watertown and now it is boston at large. >> he's on the run. he's in a car apparently. an suv. there may be another vehicle involved. he's on the run. he's traveling. as time passes, the distance away from watertown increases obviously. therefore the dragnet will expand. with that you have other law enforcements involved. you have other statutes, other jurisdictions within the agencies involved. you have new hampshire, you have maine, you have new york, you have connecticut potentially where he could travel over a short period of time. this is an intense widespread dragnet. he will be apprehended.

it's a matter of how soon, not how long and without any further harm to anyone. >> we're going to slip in a commercial break. if you have been watching the futures are now down. g.e. trading lower. consternation about the sales in europe. made comments about some of the weakness maybe they are seeing in europe. also ibm is a big loser this morning. down about nine points. ibm down nine at 198. a real concern about ibm missing on the bottom line. revenue not great. they blame the depreciating yen and not closing big deals. some of them in europe. like oracle said the sales -- people are pointing out it's hard to keep growing earnings if you can't do better in revenue. definitely affecting the dow futures. if you're on the west coast, just wake up, a manhunt in

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for 1.99% financing during our certified pre-owned sales event through april 30th. this is still developing, the city of boston urging now city wide shelter. residents being told to stay inside, lock your doors. one of the suspects in the boston bombing case is on the

run, armed and dangerous. joining us from washington, former cia director of operations and former department of homeland security chief of staff. chad, one point i think you want to make if we could get this guy alive that's paramount right now, but is it likely. >> we know from his brother that it may be the case he's prepared to kill himself. however, adrenalin is running really high. one of their brethren killed. he is much more valuable to us alive so we can interrogate him and get him to talk. as was noted before in the announcement from the mayor and the bureau, we can't rule out there aren't other members of the cell at this time. so we also can't rule out foreign links. so those things could be much more easily ascertained if we

can get a hold of the individual alive and hold an interrogation. >> we have a spectrum this wide on what we are willing to talk about. you used the word cell. yet we know these guys might have come to the united states with their parents when they were e children. one was 16 and the other would have been 9 years old. and you also, chad, are.ing out kind of a rudimentary device. a well-financed cell with a lot of foreign help. would that be the kind of devices you would come up with? >> it suggests if we look at the lack of sophistication of the twice which is literally something you could see in issue speier magazine. build a bomb in the kitchen of your mom. that lack of sophistication suggests the b team. this is not the a team. and if you look at other signatures here, the way that they actually executed the

explosions, they were not -- they were done within 15 seconds of each other as opposed to where you blow for the first and wait for investigators to come on scene and get a second wave. the first suspected posted on a website that he was disaffected with american society. he didn't have any friends and he didn't understand americans. if you're ata and you come here with the intent to kill americans at 9/11 you would never have seen the 9/11 highjackers posed anything that would suggest they were post affected. their mission, to blend into society, assimilate. this does look like the b team and it doesn't look like somebody who came here originally with the intent to become radicalized but over time they failed to assimilate and self radicalized. >> what are you referring to? >> the older brother, the first

suspect, has some type of social media facebook page. it's an interesting point, andrew, if you look at this case study, what you are going to see is social media has played a critical role in modern counterterrrorism. we will see, for example, the moment these pictures were posted by the fbi last night at 5:15, between that moment and now we will have seen the the acceleration of the apprehension of these individuals in part because the bureau is flipping the internet to our advantage. meaning, the terrorists are using the internet to empower themselves. we're now using the internet to crowd source to help law enforcement to eyes and ears such as these. >> chad, you are not only from the cia but also the office of

homeland security. the largest population in the united states happens to be in watertown. is this you were spending much time focusing on or watching in homeland security or is this new and out of the blue? >> well, it's always a sensitive topic, becky. we have to have a conversation about this nationally. the department of homeland security has a division called director of intelligence and analysis, ina. and they do conduct what ian is referring to, demographic studies. they are patterns of ethnic groups that had individuals that failed to assimilate like this. what we have to be careful about is any kind of racial profiling, instead what we're doing both dhs and the bureau work very,

very hard to do community outreach, to be part of these communities. in fact, what with we see repeatedly is the willingness of members of these communities, if any one of their members becomes radicalized frequently we see them come forward and actually provide information on that individual. for example, look at the underwear bomber. his actual father reported him to u.s. authorities. we have seen that in other cases as well. >> okay. chad, thank you for your perspective. we will be checking in with you as the investigation continues. we're going to continue to follow the latest out of boston. first, ale quick check on business headlines this morning. mcdonald's reporting very slight rise in first quarter profit of sales. fell about 1%. the company missing earnings. 1.26 per share. mcdonald's beat revenue estimates. though it is reporting it

brought in $6.61 billion in the first quarter. the company reported better than expected earnings per share of 1.01. revenue missed estimates slightly at $10.67 billion. it is the world's largest oil field services company, slumberje. talked about this earlier. blackstone ending its pursuit of dell, citing industry-wide drop in pc cells. removes one major obstacle by michael dell. blackstone pulling out one month after it lost a challenge to take dell private. trading down in premarket trading. i never imagined blackstone would pursue that deal. the company reporting a 16% drop in earnings versus first quarter last year on increased drilling and gas.

g.e. shed the last of its stake in nbc universe sal. what was your parent company the first quarter. g.e. matched earnings 35 cents a share and missed slightly. >> if you were just watching the ticker, vertex is up. cystic fibrosis trial. that's a nasty one. nothing that works that well right now. and you can see that whatever they looked into the data closely yet up 32 points. microsoft go by up over 80 cents, which people we have been talking about in the last few sessions. would it ever get going? and also honeywell reporting better than expected reports.

put with he put aig in there. >> a little bit of business news. we're going to get back to the news and the very dangerous situation in boston and bring you more updates when we come back. hi nia... nice to meet you nia, i'm mike. what do you drive? i have a ford explorer, i love my car. and you're treating it well? yes i am. there are a lot of places you could take your explorer for service, why do you bring it back to the ford dealership? they specifically work on fords. it seems to me like the best care. and it's equal or less money, so it's a value for me. get a free brake inspection and brake pads installed for just 49.95 after rebates when you use the ford service credit card. who doesn't enjoy value? arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz. lets you jump backwards and forwards in time to capture the perfect shot. blackberry z10 with time shift. built to keep you moving.

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welcome back, everyone.

we have been continue to go watch this developing story in the boston area today. watertown, massachusetts is where it was the site of a huge manhunt that spread in boston. all residents now advised to stay indoors. that covers about a million people. why don't we listen in a little bit on what's been happening from the local nbc affiliate in boston. here's what they're watching. >> behind that garage is the large gray house that appears to be the focus of their attention. it's not clear why. it's not clear why. we're not going to get into exact streets for anybody who might be listening inside. we didn't see any officers clear this house. it's always been behind the area that is their concern. in fact, we were down that street when we first came here live. officers now on both sides of the house. the chopper circling overhead looking down on this house. and through the trees we can't

see any sign of activities. s.w.a.t. officers continuing to order officers out. a detective is actually securing his camera inside our vehicle. we're listening to the radios as more and more s.w.a.t. -- your attack on me. >> the order from the officer. now we have canine units moving in. it's clear that the officers feel the suspect is inside. how they got that idea suddenly is not at all clear. because there have never been any officers behind us at this area. they have never swept this area. so something gave them that word

and convinced them. and they all came running down for reasons unknown. they are serious. there's no question about it. and they believe there is reason to take seriously that gray house as we continue to watch them take positions. and one of the orders was to attack. >> i know we'll be on a bit of delay because of the technology we're using. dan, we are not showing this live picture right now. right now we're going to have to go on what you're telling us because we chose to take it down in case something might happen. do you have any indication of what triggered this response? was it a home owner? was it a noise? did a dog alert to this home? do you have any idea why all of a sudden they are they have just decided to go to a home they have been standing down the past four, five, six hours?

>> no. that's a completely amazing part. i know why you're not showing the home. if someone is inside and showing our air, you don't want to give an idea what's going on. more and more officers move in and move us behind the vehicles. but that is the amazing thing is that there was no indication what triggered this. just the officers running down. they're moving us back again further now. we can't grab the gear. we have to leave it there. we're not using it for air, sir. >> i understand. >> they're turning it off. >> i'm ordered to clear. i have to clear. >> what you've been listening to is live video feed not shown by the affiliate. they dropped out of it.

as you can see and hear at that point police were saying they had to shut down the feed and move them back. these are fast-moving developments we have been watching all morning long. law enforcement officials moving quickly on one particular house. we believe it was in watertown. we're not 100% sure of that. but obviously the search had been all through watertown. it has been extended to boston. residents told to stay inside. what we were just witnessing before the feed was cut off, the police focusing on one particular house and a garage. >> this is not for air now. scott probably knows this. someone else is in police custody from the house. from 410 norfolk, cambridge, where the two live. not a suspect at this time. the two brothers lived there with other family members. and there is another person, not a suspect at this time, that is in police custody from the house at 410 norfolk street.

>> i can also tell you tom costello from nbc reporting a no fly zone over watertown. three and a half nautical mile radius. it restricts the media. police activity only. you can see some of the choppers in that area that have been there earlier. a no fly zone could lead you to expect they are hammering down on this particular location. >> let's bring scott cohn back into the conversation. really interesting images and sounds just moments ago as police were surrounding this home. is there anything you can update us on here? do we have scott? i think we lost scott. >> scott has been in watertown. obviously it's a large location. that activity has been taking place throughout the town and surrounding communities. it looks like it has been focus

using in on this one location. we will continue to check it out. but scott is standing by in watertown. scott, i don't know if you know this police activity is taking place from where you are. >> if i had to guess just based on where the chopper is hovering is probably a mile or two tops. i'm sorry. if i had to guess based on where the chopper is hovering, it's probably about a mile or two from here. but that's if it's based -- based on that. and we don't want to give too much information about location. but this police chopper has been up for the last little while. really one of the issues that seemed to be hammering them for a while, we had a low ceiling of clouds and they couldn't do aerial searches. also we're waiting to some degree for daylight.

the sun is peeking through. this chopper has been up for a little while. now almost directly over us is where the chopper is. that doesn't really tell us where the suspect is. >> in terms of police activity we have seen footage where a lot of law enforcement converging. does it seem like there has been heightened activity or at least a surge? >> there absolutely has been heightened activity. we were talking how there were a lot of vehicles flowing into this area. police vehicles and otherwise. and it could be they were staging for something like this. the chopper is literally right over my head right now. but, again, that could just be the vantage point they're trying to get. the vehicles that had been coming in went past. again, i want to be very careful about what i say in terms of location. >> right. >> other than we're in watertown. and something is going on.

>> okay. scott cohn, stay where you are. we're going to probably come back to you in just a moment. right now joining us on the squawk news line is phillip mudd, counter terrorist center now with a new america foundation. good morning to you, phillip. >> good morning. >> i imagine you're watching this play out the way we are. we do understand that some suspects have been taken into custody at the home of the now alleged attackers in all of this. tell us what would be going on right now? >> there's two parallel things going on right now. one at the scene and one is the intelligence process behind the scene. the people at the home might be suspects. they might have found out information already from public records about the individual that died and they determined where he lived and talked to people in there. they might have gotten a tip. it could be they're talking to the people in the building that

is suspect. by the way, i suspect this is going to end in death. this individual has lost his brother. he has come to this country to commit san act of terror. he didn't leave the scene when he could. my guess is he's either going to die from suicide or killed by police. >> phil, the conversation we have been having all morning, whether this is a cell, whether there's a larger story here, other support networks. given what you know about the circumstances, the background of these two brothers, chechen brothers that came to this brother. between 2002-2003 with their families. is there something to be said about all that? >> it looks like a closed cell. we haven't seen more than two brothers. this is interesting for me as a former practitioner. one is 26, one is 19.

you probably had a radicalizer, the older brother, who persuaded the younger brother to do this. they don't seem to engage at this point another operator. that tells me we might have a closed circle. >> fellowship, thank you for joining us this morning. >> sure. >> we're going to try to come back to you i imagine throughout the day as this story progresses. >> again, this has been a quickly developing story. it all started taking place after 10:20 east coast last night. his was related. was unclear since that time we have learned a lot. a lot of questions still out there. video from just moments ago where police and law enforcement officials, s.w.a.t. teams surrounded a house we believe in s in watertown, massachusetts. but the entire area of boston about a million people have been asked by the police and mayor to stay inside, lock their doors. this has been an active manhunt

taking place all morning long. you're looking at pictures of the area that was surrounded just earlier this morning. probably in the last 20 or 30 minutes. we will continue to bring you updates on this major story. "squawk box" will be right back. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions...

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hey! ♪ [ howls ] ♪ turn of event in the last 11 hours in the boston area. what you are looking at are pictures moments ago of the police and local law enforcement

officials focusing in on what we believe is a home in watertown, massachusetts. this is where they have tracked down where this man hunt that has taken place has led them. this is a man hunt to chase a terror suspect in the boston marathon bombings. his brother, we believe they were two brothers who dhaerd out. his brother was killed earlier today running from police. we do -- we have been watching all of this and are watching now as this develop, but please, just in the last half hour have focussed in on a home in watertown, massachusetts, and we believe this is where this chase has led them. in the meantime, residents in all of boston, which is almost a million people, have been asked to lock their doors and not open things up. they have asked everyone in boston to stay indoors. the situation is not a normal day in the entire boston area. local busses, subways, transportation is shut down and has not been operating.

we've been watching to see what happens. amtrak has shut down the corridor from boston to providen providence. it is operating under a heightened sense of security. authority is at the home of the suspects in cambridge, mass. and now there are two people in custody and not characterized as suspects and are under arrest and there are two people that are now in custody in norfolk street which is in cambridge where these two brothers live with family members. and also worth noting, scott cohn reporting earlier that the police are looking fair gray honda. we can give out the license plate number again to viewers. 316e as in edward, s as in sam, r as in robert. >> robert. >> there's been a huge man hunt that's been taking place. out of an abundance of caution they have warned people as far away as new york city to be on the lookout for the gray lonneda

and it's shut down a huge swath of the northeast. >> there is a lot of activity in a single house in watertown. bill griffith's in boston. you're in boston? >> yes. i am here in an unrelated event. i'm the board member of some non-profit up here and we had board meetings all day and an event i'm emseeing tonight and all of that is up in the air at the moment, and i just went outside and the hotel just a couple of blocks from copley square. the police presence outside is very evident, but what's interesting is they have shut down the cab so you can't grab a cab anywhere to go from point a to point b in town, but if you go to the airport you can take that cab just to get out of town, but walking around is not as difficult as you might imagine and it's not like i would imagine. i thought they would be shooing people back indoors at the

hotels here, but that's not the case. i asked one of the security guards at the hotel here if i was able to walk outside and just start walking around and he said, sure, go ahead. >> are there people on the streetses? are there a lot of people? >> there are people on the streets, but not nearly as you would imagine for a friday morning. you know this area very well and a lot of crowded area and a lot of colleges in this area and you are not getting that at all. you do have a police presence like on every other corner. very, very little traffic to speak of at all except for law enforcement. so, you know, we are definitely in lockdown mode, but not nearly as clamped down as i thought it would be. hey, listen, everyone is taking this very, very seriously and we are all up here hoping that it can be resolved very soon. >> yeah. you're a ways from where the action is, unless there's something else amiss in the area

i would imagine that even though they're saying be aware in boston, it looks like everything -- you probably have your tv on, bill, it looks like everything is happening in watertown. >> it's all west with of here, but we are -- >> go ahead. >> we're a couple of blocks from the finish line and all of that whole area is barricaded. >> which hotel are you in? you don't want to tell me or -- you don't have to. >> i'm sorry. i didn't hear the question. >> i was wondering which hotel you were in. >> park laza. >> i know exactly where that is. last time i stayed up there i stayed at the lennox. it's incredible we do know that area very well. >> what was the story -- we got in, becky, literally just as the shooting at m.i.t. was happening last night and we got in 10 until 11:00 -- >> scott cohn says something is happening. scott cohn? >> just to tell you, joe, that there are a let of officers

moving around on foot now. the chopper has narrowed its circles -- they're definitely on to something. we'll show you that, show you the chopper and there's the smell of something in the air that's sort of like a burning smell or something like that. i don't want to get ahead of ourselves on what that is tp it could be anyone anything. a lot of sirens coming this way. that gives you a flavor that something is up. i'll leave it at that, i suppose. >> we've been looking at pictures and we're not entirely sure of the timeframe and some of these people were people being evacuated from their homes. the streets are deserted where you are and people are staying in and listening to police about staying inside? >> reporter: i'm looking at some police vehicles going back into this neighborhood that we've been looking at that's about a mile behind us. they definitely seem to be

flooding in there to some extent and that as we understand it, is an area that's pretty densely populated. a lot of single family homes, a lot of smaller homes. we don't know who lives there. we don't know what it's all about, but the activity is heightened considerably and a lot of manpower now moving into that neighborhood that's probably half a mile away from me. >> scott, stay where you are. we'll come back to you the second you have news. in the meantime we will go on to the squawk news line. james cavanaugh is retired special agent and nbc analyst and involved with the waco bomber and the atlanta olympics bombing investigations. good morning to you. >> reporter: hello. this is jim, how are you? >> thank you for joining us. big issue this morning. can you or how do you begin to

take the suspect alive? you do. >> boston should feel good. the coward number two is probably barricaded there in his own home. the third person that was apprehended could be the relative that they were talking about that might have made some threats. the key issue with the bar is for the tactical commander is whitehead number two alone or is he there with another person. that's what you will want to find out. you're setting up the perimeter for the tactical teams. i've been watching a live feed it's state police, s.w.a.t., police srt which is atf s.w.a.t. and all of these team, you have the city police s.w.a.t., all of these teams have the tactical agents with the armored vehicle and they're all equipped similarly,